Cost-volume-profit analysis shows the relationship between these factors. The figures expressed in a break-even chart can be used planning control ad decision making. The relation ships can also be helpful in understanding how all costs must be covere...
Cost-volume-profit analysis shows the relationship between these factors. The figures expressed in a break-even chart can be used planning control ad decision making. The relation ships can also be helpful in understanding how all costs must be covered in menu pricing. Involved in these relationships is the contribution to overhead and profit or contribution ratio. This study used the food service operation of H hotel. Assumed the FC would be 10% of the High Volmue, the VC would be 76% of the high volume. And in the CVP of individual meals, selected labor cost of the VC, assumed labor cost would be 35% of the volume.